# Advice 1: How to calculate growth rate

The rate of growth is a characteristic of changes in any economic indicator over a selected period of time. It is defined as the ratio of the magnitude of changes increased in the reporting period to the value of the index in the previous period and may be expressed both in absolute values and in percent. Though this definition sounds somewhat convoluted, in practice one calculates the amount of increase is quite simple.
Instruction
1
Subtract the value of the indicator in the billing period the value of this index in the base period, then divide the resulting value by the value of the indicator in the base period, and the result is increase a hundred times - so you get the size of the increase relative to the base period, expressed in percent. For example, if the revenue in the reporting period amounted to 150 000 and in the previous it was 100 000, the gain calculation will look like this: (150000-100000) / 100000 * 100 = 0,5 * 100 = 50%.
2
Use the calculator for practical calculations of the rate of growth. For example, it may be the calculator supplied with Windows software Microsoft. A link to it available in the main menu system on the button "start" - revealing it is necessary to go to "Programs", then to "Standard", then open the section "Service" and select "Calculator". And you can use the run dialog programs - press the key combination WIN + R, type calc and click the "OK"button.
3
Perform a sequence of mathematical actions by clicking buttons in the calculator interface on the display or pressing the exact same keys on the keyboard. Any peculiarities in the operations of subtraction, division and multiplication in this calculator is not, therefore, difficulties with the calculation of growth rate should not be here.
4
Use the search engine Google, if the calculator is not at hand, but there is Internet access. In addition to search operations, Google is able to do mathematical calculations. To do this in the search query box to enter the appropriate entry. For example, as described in the first step sample calculation of the growth rate in the search query will look exactly the same: "(150000-100000) / 100000 * 100". Sending data to the server is automatic, so when a request is entered to get the answer will not even need to press the button.

# Advice 2: How to calculate growth rate

Changes in the economic situation of the organization must be characterized using techniques and methods of statistics. Using the series you can see how phenomena change over time. Performance level changes over time are calculated such indicators as the absolute growth, growth rate and growth rate.
Instruction
1
Calculate the absolute gain of the selected quantity over a certain period of time. To do this, calculate the difference between the initial and final level according to the formula Δ U= U2-U1, where U1 is the initial level value, U2 - the ultimate level. Absolute growth characterizes how many units of value in the subsequent period is more or less than its level in the previous period.
2
Determine the growth rate of this magnitude for the period. To do this, find the ratio of its level in the period to the level in the previous period according to the formula K= Y2/ Y1 × 100%, where Y1 is the initial level value, U2 - the ultimate level. This index describes how many times the value in one period is greater or less than the value in another period.
3
Find the growth rate of this magnitude by calculating the ratio of the absolute growth to the level taken as a base of comparison. The base of comparison can be constant and variable. When comparing the current level with the previous calculated chain growth rate, and the comparison with an initial indicator (base) - base.
4
Calculate the chain growth rate by the formula CRC = (U - U-1) / U-1, where U - level values in the current period, U-1 - level value in the previous period.

Determine the base rate of growth by the formula CRC = (Yn-Y1) / Y1, where Yn - level values in the current period, U1 is the initial level value.
5
Determine the rate of change of the index for the entire period. To do this, calculate the average growth rate according to the following formula
K = n-1 √ Yn/Y1, where n is the number of periods changes, the UE - leaf level value, Y1 is the initial level. To calculate the average rate of growth of the need of resulting numbers subtract one and multiply the result by 100%.
6
Consider as an example the calculation of the average growth rate of earnings for the year provided that at the beginning of the year it amounted to 100 thousand rubles, and at the end of the year 300 thousand rubles. Calculate the rate of profit growth: 300/100 = 3. That is, the profit for the year increased by 3 times.
7
Find the root of the number 3 in degrees 11, the result is equal to 1,105. Subtract from the resulting number of unit and multiply by 100%. So, the average growth rate of earnings per month will be equal to 10.5%.

# Advice 3: How to find growth rate

In order to calculate the growth rate for any financial measure, it is enough to know its numeric expression in different moments of time and be able to apply a simple formula.
Instruction
1
Select financial indicators, growth rate of which you need to calculate. Remember that the rate of increase shows in what direction has changed over time, so you need to know two values, for example, the amount of gross revenue 2010 and 2011.
2
Calculate the rate of growth. To do this, divide the figure for the new period than last period. From this value subtract 1, multiply by 100%. For gross revenue formula as follows:

(Gross sales 2011/gross sales 2010-1)*100%.
3
Don't confuse growth rate with the growth rate last calculated by the formula:

(Gross sales 2011/gross sales 2010)*100%.

Growth rate always has a positive sign, even in those cases, if, for example, gross revenue (or any other financial index) has fallen from 100 conditional rubles in 2010 to 50 in 2011. The calculated growth rate is 50%, and increase to 50%.
4
Check out for yourself. Before the counting of growth rates compare between the financial performance of the two periods. If the data for the earlier period more than the later, there is a real reduction in the value of interest, the growth rate will be negative. On the contrary, if the indicator grew over time, so the growth rate will have a positive sign.
5
Please note that you can use the growth rate not only in cases where there are two time-sequential values of one financial indicator. Calculation of growth rates and growth is also underway to compare data for a specific period of one year, for example, month or quarter, with data of the same period of the previous year. It is possible to see an increase in gross revenue of Oct 2011 compared with the amount of the gross proceeds of the October 2010.
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